Christine Lagarde has poured cold water on the viability of an esoteric economic theory popularized by US Representative Alexandria Ocasio-Cortez.
Lagarde said Thursday at the International Monetary Fund's spring meeting in Washington, as reported by Bloomberg.
"We do not think that any country is currently in a position where that theory could actually deliver good value in a sustainable way." Ocasio-Cortez is a major proponent of MMT as she looks to build support for her policy ideas including a Green New Deal and an expansion of Medicaid. MMT proposes that budget deficits may not be as bad as conventionally thought as a government that controls its currency could simply pay off its debts by creating more money.according to Bloomberg.
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